Recommendations of Deutsche Telekom: A Transformation Journey (A) Case Help

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Recommendations of Deutsche Telekom: A Transformation Journey (A) Case Study Solution

RecommendationsOn the basis of above internal and external analysis of the business along with the evaluation of various options, the business is suggested to think about alternative 3. As alternative 3 would allow the company to broaden in international markets without any decrease in its local earnings and any deterioration of its market position. The business could pursue alternative 1 which would enable the business to focus on potential global markets rather than the local markets however as the company is extremely dependent on the local markets with 90% of its stores in the US, there fore pursuing option 1 would result in the substantial decrease in business's income.

Aletrnative-1: Expanding International Brick and Recommendations of Deutsche Telekom: A Transformation Journey (A) Case Analysis Stores

International SegmentsThe business has a long term market position in US which can not be produced soon in the brand-new markets. The choice would assist the company to expand in international markets along with the removal of problems raised in its regional markets related to its diversity.

Pros:

• Exploration of brand-new worldwide markets.
• Increase in income from global markets.
• Removal of problems associated with variety.
• Income diversification.
• Action towards being a strong worldwide brand.

Cons:

• Loss of extensive profits from the local markets.
• Increase in competition.
• Distinctions in cultures could led to a failure of the brand name particularly in Asian countries.
• Low incomes at initial levels.
• Increase in marketing expenses to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Deutsche Telekom: A Transformation Journey (A) Case Analysis Stores

With the increased patterns towards online shopping, the online stores like Amazon, Alibaba etc. might present a severe danger to the market share of business. In this circumstance the business might think about presenting Click and Recommendations of Deutsche Telekom: A Transformation Journey (A) Case Help stores. These shops with a low requirement of funds to settle would make it possible for the company to reach global markets, without ending its domestic shops.

Pros:

• Low financial investment
• Lowering competition danger
• Access to the world markets
• Increasing the size of consumer base
• Easy to manage
• Large Earnings
• Low Operating Expense
• Easy brand-new market entrance

Cons:

• Threat to the market position
• Removal of brand name Originality
• Elimination of the terrific store experience.
• Threat of decline in elite sales.

Alternative-3: Expansion towards International Markets Without closing Domestic Stores

Another choice that the business could think about, is to broaden towards the international markets without closing its domestic shops that contributes to the huge part of earnings of the company. The benefits and drawbacks associated with Alternative 3 are given below;

Pros:

• Reducing competitors hazard
• Access to the world markets
• Increasing the size of consumer base
• Large Earnings
• Expedition of new global markets.
• Boost in earnings from worldwide markets.
• Revenue diversity.
• Action towards being a strong global brand name.

Cons:

• Continuation of issues connected to variety.
• Distinctions in cultures might resulted in a failure of the brand particularly in Asian countries.
• Low incomes at initial levels.
• Increase in marketing expenses to get market share.



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